New Delhi, May 30 -- The latest stress test for April 2025 reveals that some small cap mutual fund schemes will take as long as 70 days to liquidate 50 percent of portfolio. Those who are not aware, all mutual funds are supposed to make a range of disclosures with respect to their mid and small cap schemes wherein they examine the liquidity of portfolios under the stress scenarios for their mid-cap and small-cap funds. These monthly disclosures are mandatory, per the Sebi guidelines .

Mutual fund houses reveal a number of metrics for their small and mid cap schemes in thisstress test and liquidity analysis. They are supposed to reveal the time period which they would take to liquidate a sizable portion of the scheme.

They reveal an arra...